UK hotels enjoyed a ‘solid’ 2012 but expectations for 2013 are low.
Hotels in London and the regions enjoyed increases in revenue per available room (RevPAR) during 2012 despite no noticeable recovery in consumer or business confidence.
UK hotels enjoyed a ‘solid’ 2012 but prospects are modest for the year ahead, according to figures released by PKF.
According to a report on leisure industry website Big Hospitality, new figures released by the hotel consultancy team at PKF show RevPAR grew by 3.5% in the capital last year and by 0.5% in the provinces.
The statistics show how well hoteliers performed despite the continuing economic uncertainty. However Robert Barnard, a partner for Hotel Consultancy Services at PKF, said expectations would remain ‘modest’ for 2013.
The increase in RevPAR for the 12-month period was driven in London by higher room rates – the average daily room rate (ADR) grew from less than £144 to £150.23. In the regions, a 0.7% increase in ADR to £60 also helped improve RevPAR.
Despite a year of big headline events including London 2012, occupancy fell in both the capital (down 1.3% to 81.6%) and elsewhere in the UK (down 0.2% to 70.%).
The PKF stats clearly show the continued strength of the London hotel market. New information from both hotel experts STR Global and real estate firm Jones Lang LaSalle back up that view.
STR Global has revealed London was one of just four markets in Europe to post an increase in ADR of more than 10% – according to the firm, the ADR jumped by 12%.
Meanwhile, Jones Lang LaSalle has said the capital continues to attract foreign capital. Investment volumes in London totalled £1bn for 2012, 56% of total UK investment volumes.
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